Visa beats Q4 profit estimates on higher transactions, payment volumes

Overview

• US digital payments giant's fiscal Q4 revenue rose 13%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q4 beat consensus, up 17% yr/yr

• Company repurchased $4.0 bln in shares and raised dividend 16%

Outlook

• Visa did not provide specific financial guidance for the upcoming quarter or full year in its press release

Result Drivers

• PAYMENTS VOLUME - Q4 revenue growth was driven by a 9% yr/yr increase in payments volume, per company

• CROSS-BORDER ACTIVITY - Cross-border volume excluding intra-Europe rose 14% yr/yr, supporting international transaction revenue

• PROCESSED TRANSACTIONS - Total processed transactions grew 10% yr/yr to 74.2 bln, contributing to data processing revenue

Company press release: Full Story

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 39 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Visa Inc. is $421.00, about 4.2% above its October 26 closing price of $404.16

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 24 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)